$91K Oracle Incident Leads to Winding Down of Full Sail DeFi Protocol

Full Sail, a decentralized finance (DeFi) protocol, has announced that it will be winding down operations following a security incident involving an oracle issue. The incident resulted in a loss of approximately $91,000 from three automated vaults.

The protocol's team has stated that they will absorb any shortfall to ensure community depositors are compensated first. However, the total value of affected user claims and the amount of protocol-owned liquidity available for repayment remain unknown.

Full Sail linked its incident to Switchboard, which is investigating a potential compromise of its Move-based implementations. The precise exploit path and final responsibility for the oracle issue have not been confirmed.

The protocol's live app has paused withdrawals until oracle integrity can be restored and verified. New deposits and liquidity-provider reward claims have also been disabled, with regular pools expected to become withdrawal-only after final security checks.